Company Reports

UOB's second-quarter net income rose 10% year on year, aided by a one-off disposal gain and 5% net fee income growth, which more than offset weaker net interest income. The interim dividend increased 3.5% to SGD 0.88 per share.

United Overseas Bank is one of the three dominant banks in Singapore. Compared with its two rivals, it has somewhat smaller exposure to Greater China, while it has larger exposure to Association of Southeast Asian Nations markets outside Singapore than Singapore's largest bank, DBS. UOB's scale in Asean grew further following its acquisition of Citibank's Asean consumer businesses (wealth management and retail deposits) in 2022-23. We think UOB now has sufficient scale in Malaysia and Thailand to compete effectively with the largest local banks in these markets. With the integration largely completed, management shared that its next phase of growth will focus on increasing assets under management and invested AUM penetration of the enlarged customer base, driving wealth business income to double from 2025 to 2030. We believe this should help UOB narrow the gap with its crosstown peers in wealth management fee growth.

United Overseas Bank is one of the three dominant banks in Singapore. Compared with its two rivals, it has somewhat smaller exposure to Greater China, while it has larger exposure to Association of Southeast Asian Nations, or Asean, markets outside Singapore than Singapore's largest bank, DBS. UOB's scale in Asean grew further following its acquisition of Citibank's Asean consumer businesses (wealth management and retail deposits) 2022-23. We think UOB now has sufficient scale in Malaysia and Thailand to compete effectively with the largest local banks in these markets. With the integration largely completed, management shared that its next phase of growth will focus on increasing assets under management and invested AUM penetration of the enlarged customer base, driving wealth business income to double from 2025 to 2030. We believe this should help UOB narrow the gap with its crosstown peers in wealth management fee growth.

UOB's first-quarter net profit fell 4% year on year to SGD 1.4 billion, as net interest income softens on lower benchmark rates, while noninterest income moderated from a high base last year. Full-year guidance is unchanged.

UOB's 2025 operating profit fell 4%, as the 7% growth in net fee income was not enough to offset weaker net interest income. Including the special dividend, the full-year dividend was SGD 1.81, 12% lower than in 2024.

United Overseas Bank is one of the three dominant banks in Singapore. Compared with its two rivals, it has somewhat smaller exposure to Greater China, while it has larger exposure to Association of Southeast Asian Nations, or Asean, markets outside Singapore than Singapore's largest bank, DBS. UOB's scale in Asean grew further following its acquisition of Citibank's consumer businesses (wealth management and retail deposits) in Malaysia, Thailand, Vietnam, and Indonesia over 2022 and 2023. We think UOB now has sufficient scale in Malaysia and Thailand to compete effectively with the largest local banks in these markets.

United Overseas Bank is one of the three dominant banks in Singapore. Compared with its two rivals, it has somewhat smaller exposure to Greater China, while it has larger exposure to Association of Southeast Asian Nations markets outside Singapore than Singapore's largest bank, DBS. UOB's scale in Asean grew further following its acquisition of Citibank's consumer businesses (wealth management and retail deposits) in Malaysia, Thailand, Vietnam, and Indonesia over 2022 and 2023. We think UOB now has sufficient scale in Malaysia and Thailand to compete effectively with the largest local banks in these markets.

UOB's third-quarter operating profit declined by 16% year on year, largely driven by lower net interest income. Net profit declined 72% as the bank made an SGD 615 million preemptive general allowance provision. As such, the third-quarter return on average shareholders' equity is weak at 3.5%.

We are lowering the Morningstar Uncertainty Ratings for the Singapore banks we cover—DBS Group Holdings, Oversea-Chinese Banking, and United Overseas Bank—to Low from Medium.

United Overseas Bank is one of the three dominant banks in Singapore. Compared with its two rivals, it has somewhat smaller exposure to Greater China, while it has larger exposure to Association of Southeast Asian Nations markets outside Singapore than Singapore's largest bank, DBS. UOB's scale in Asean grew further following its acquisition of Citibank's consumer businesses (wealth management and retail deposits) in Malaysia, Thailand, Vietnam, and Indonesia over 2022 and 2023. We think UOB now has sufficient scale in Malaysia and Thailand to compete effectively with the largest local banks in these markets.

United Overseas Bank, which held off revising guidance last quarter amid tariff uncertainty, lowered its revenue forecasts as it reported second-quarter results.

United Overseas Bank is one of the three dominant banks in Singapore. Compared with its two rivals, it has somewhat smaller exposure to Greater China, while it has larger exposure to Association of Southeast Asian Nations markets outside Singapore than Singapore's largest bank, DBS. UOB's scale in Asean grew further following its acquisition of Citibank's consumer businesses (wealth management and retail deposits) in Malaysia, Thailand, Vietnam, and Indonesia over 2022 and 2023. We think UOB now has sufficient scale in Malaysia and Thailand to compete effectively with the largest local banks in these markets.

United Overseas Bank is one of the three dominant banks in Singapore. Compared with its two rivals, it has somewhat smaller exposure to Greater China, while it has larger exposure to Association of Southeast Asian Nations markets outside Singapore than Singapore's largest bank DBS. UOB's scale in ASEAN grew further following its acquisition of Citibank's consumer businesses (wealth management and retail deposits) in Malaysia, Thailand, Vietnam, and Indonesia over 2022 and 2023. In particular, we think UOB now has sufficient scale in Malaysia and Thailand to compete effectively with the largest local banks in these markets.

United Overseas Bank reported flat first-quarter earnings of SGD 1.49 billion, including SGD 133 million in general allowance provisions, and said it will revise its 2025 guidance later. The bank also signaled plans to lift general allowances further in the coming quarters amid tariff uncertainty.

United Overseas Bank is one of the three dominant banks in Singapore. Compared with its two rivals, it has somewhat smaller exposure to Greater China, while it has larger exposure to Association of Southeast Asian Nations markets outside Singapore than Singapore's largest bank DBS. UOB's scale in ASEAN grew further following its acquisition of Citibank's consumer businesses (wealth management and retail deposits) in Malaysia, Thailand, Vietnam, and Indonesia over 2022 and 2023. In particular, we think UOB now has sufficient scale in Malaysia and Thailand to compete effectively with the largest local banks in these markets.

We adjust our Morningstar Uncertainty Ratings for 14 of the 16 Asia, excluding China, stocks we cover after US President Donald Trump announced much more severe tariffs on imports than we or the market were expecting, raising uncertainty over future economic conditions across Asia.

United Overseas Bank guided for high-single-digit loan growth and double-digit fee growth in 2025, and announced a SGD 3 billion capital return over three years, including special dividends of SGD 0.8 billion in 2025 and a buyback of up to SGD 2 billion, or 3% of current market cap.

United Overseas Bank is one of the three dominant banks in Singapore. Compared with its two rivals, it has somewhat smaller exposure to Greater China, while it has larger exposure to Association of Southeast Asian Nations markets outside Singapore than Singapore's largest bank DBS. UOB's scale in ASEAN grew further following its acquisition of Citibank's consumer businesses (wealth management and retail deposits) in Malaysia, Thailand, Vietnam, and Indonesia over 2022 and 2023. In particular, we think UOB now has sufficient scale in Malaysia and Thailand to compete effectively with the largest local banks in these markets.

United Overseas Bank is one of the three dominant banks in Singapore. Compared with its two rivals, it has somewhat smaller exposure to Greater China, while it has larger exposure to Association of Southeast Asian Nations markets outside Singapore than Singapore's largest bank DBS. UOB's scale in ASEAN grew further following its acquisition of Citibank's consumer businesses (wealth management and retail deposits) in Malaysia, Thailand, Vietnam, and Indonesia over 2022 and 2023. In particular, we think UOB now has sufficient scale in Malaysia and Thailand to compete effectively with the largest local banks in these markets.

Comments Thursday from regional Federal Reserve Bank presidents and policy board members suggest the Fed may be more likely to hold than to cut US interest rates. One to two rate cuts are now implied by Fed funds futures prices, versus two to three cuts a month ago.